Loretta,

The following answer to your question is long. So, pour yourself a cup of coffee, and get comfortable before reading it.

In Connecticut there are ways around the corporate/LLC shield. Similar rules of law probably apply in your state in some form. You will need to check the law of Maryland to see if the information below is also true there.

If the corporation/LLC is properly organized, in good standing with the State, its identity was properly disclosed in the course of your business transactions and if a contract was signed by a properly authorized party in his properly disclosed representative capacity, your cause of action will probably be limited to the corporate/LLC entity. The purpose of incorporating or forming an LLC is to limit liability to the Corporation's/LLC's assets, and to shield your personal assets from liability. If properly done incorporating or forming an LLC provides an incredibly strong shield. Nobody should start a business without protecting themselves this way.
 
However, owners of small closely held corporations/LLC's often get sloppy about transacting business, and often: (a) only use part of the corporate/LLC's name, (b) forget to disclose the indentity of the corporation/LLC altogether, (c) sign only their name to the contract, (d) are not authorized to bind the corporation/LLC to contract or (e) do not indicate their job titles in their business transactions/contracts. Each one of these sloppy business practices can open the door to a civil action against the individual that signed to contract in his personal capacity. If there is a reasonable basis for suing the individual, you would name both the corporation/LLC and the individual in the complaint as codefendants, but make certain that there is a REASONABLE BASIS for naming the individual in the suit, or you could be sued for vexacious litigation or possibly abuse of process. In Connecticut any one of the above sloppy business practices will provide the reasonable basis.

When an individual discloses only part of the corporate/LLC's identity, he is not transacting business as a corporation/LLC, but rather under a trade name which does not provide the protection of the corporate shield. Furthermore, if the individual is using a trade name that is not properly registered with the Town Hall he might be subject to a suit in his personal capacity for an unfair trade practice.

If the individual fails you identify the indentity of the corporation/LLC altogether, he becomes personally liable under the transaction as an agent for an undisclosed principle. In Connecticut parties to a business transaction have a right to know the identities of the parties with whom they are transacting business. It is the obligation of the agent/employee to disclose both the complete identity of his principle/employer and that he is acting in a representative capacity. It is not the obligation of the other party to discover this information on his own.

In some instances a party to a contract will accept any employee's signature on a contract regardless of scope of that individual's employment duties. If the employee was not authorized by the corporation/LLC to bind it to contract, the individual employee is liable under the contract. However, there are exceptions to the rule. If the employer has accepted your services knowingly, the employer may have ratified the contract signed by the individual employee, and the corporation/LLC becomes liable. This also provides a reasonable basis to name both the individual employee and corporation/LLC as codefendants in a suit. The employer may also have placed the individual in a position that would make it reasonable for the employee to appear to have the authority to bind the corporation/LLC to contract. In this case the corporation/LLC may be liable to you because its employee had apparanent authority.

If an individual has failed to disclose the identity of the corporation/LLC altogether or failed to indicate that he is acting in a representive capacity
(disclosing his job title), he becomes an agent for an undisclosed principal, and becomes personally liable.

The above theories of recovery are based on the law of contracts and agency. There are other theories of recovery also under tort law.

In Connecticut if in the negotiation of the business transaction or in the course of performance a party to the transaction misrepresents material facts that caused you to detrimentally change your position, the other party becomes personally liable for common law fraud or possibly an unfair trade practice. Possibly he engaged in negligent conduct in which you were damaged financially. In which case he is also liable to you in his personal capacity. Under the law of Connecticut an individual who engages in tortious conduct regardless of doing so in his representative capacity for a corporation/LLC or in his individual capacity becomes personally liable for his conduct, and the corporate/LLC shield will not protect him.

There is also another theory of recovery if you conduct transactions involving large extensions of credit. Lending institutions do it all the time when dealing with loans to businesses, but it can also work in a service contract setting. If you are dealing with a corporation/LLC, you can also ask one of the corporate officers/managing members to personally guaranty payment. You will need to get his signature on the contract indicating that he is a guarantor. If the corporation/LLC fails to make payment for your services, you can demand payment from the guarantor...another reasonable basis for naming both the corporation/LLC and the individual as co defendants.

Our legal system is based on an English system of law. The above theories of recovery have are based on legal principals that have developed over centuries, and are very well thought out. The same rules apply in most states, but may have statutory or common law nuances that you will need to observe. Therefore, you will need to research your State's position on each theory before initiating the civil action.

You will also need to acquaint yourself with the rules of civil procedure in your state. Otherwise you may wind up spending more money trying to collect money than you want. For instance, in Connecticut it is extremely hard to sue a non resident defendant in small claims court. We normally need to file against them in the Superior court with a higher filing fee. There is also the problem of juridiction. If the defendant is a non resident, not physically present in the state and has not had significant contacts with the state to invoke long arm jurisdiction, you may have to initiate the suit in the defendant's state of residence. If this is the case, get a lawyer. You will not be able to do it on your own.

Hope this answers your question.